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Pulse Commodity Prices: Cost Of Staple Need

Pulses are the fundamental requirement of an individual. Most people eat them as they are really nutritious and provide a lot of benefits to the human body. It is beneficial from every aspect even from the viewpoint of trading too. Thus the pulse commodity prices are something that keeps on fluctuating. To understand this in detail, keep on reading further.

What Are Pulses?

Before understanding the pulse commodity prices in detail, let us learn about the pulses in more depth. 

Pulses are the edible seeds of plants in the legume species. Pulses grow in pods and come in a vast diversity of shapes, sizes and colors. The United Nations Food and Agriculture Organization has said that in total, there are 11 types of pulses that are edible in nature and are extremely super beneficial for the human body. 

History Of Pulses And Pulse Commodity Prices

Pulses have a long, rich history. The first sign of pulses comes from nearly 11,000 years ago in the Fertile Crescent, a region in the Middle East which was home to some of the earliest human civilizations. And certainly, pulse commodity prices have taken an adventurous ride since then. Today, hundreds of varieties of pulses are grown in more than 170 countries around the world. From the massive commodity trades to the local market near you, pulses are everywhere on this planet. 

Global Market Of Pulses

Pulses are one of the most fundamental and essential commodities in the world. Every country requires pulses. Hence the production of pulses as well as its import and export becomes a crucial part of any nation’s trade. Pulses have been majorly located in Asia, making them the largest producer of pulses in the world. 

India is the biggest maker (25% of worldwide creation), the shopper (27% of world utilization) and shipper (14%) of heartbeats from one side of the planet to the other. Beats are an enormous piece of the Indian cooking and henceforth they produce one-fourth of the beats on the planet. Then again China, Canada and Russia are the significant exporters of heartbeats.

Determinants of Pulse Commodity Prices

Pulse Commodity prices are defined by multiple factors, similar to other commodities in the market. Obviously, the supply and demand chain comes at the top when determining pulse commodity prices. Other factors such as domestic production, import and export play a vital part. Being an agricultural commodity, the weather is a definite determinant. Few other factors that play a decisive role in fixing pulse commodity prices are storage costs, transportation charges and many more.

Apart from these above mentioned determinants, productivity also plays a major role in the pulse commodity prices. These are some of the factors that are related to the productivity:

1. Irregular Rainfall

The weather conditions in India, mostly remain unstable. There is a lot of irregularity in the weather trends of the country. The pulses grow in the moist weather conditions, but due to irregular rainfall, the productivity suffers a lot. The rate of rainfall is mostly uneven, thus disrupting productivity to a greater extent. 

2. Traditional Manners Of Productivity

Though India is an agricultural based economy, still in most of the parts of the country, old and obsolete techniques are used for the production of pulses. There is a lack of HYV i.e High Yielding Variety seeds. This leads to the low production rate of the pulses. 

3. Traditional Technology

The technology used for the production of pulses is outdated. There is a lack of technological innovation in the agriculture sector. This is also a major reason for low productivity. 

4. Government Rules And Regulations

There exists strict rules and regulations by the government, especially in the field of the agriculture sector. This is because of the reason, as many of the rich money lenders and other rich farmers, exploit the poor farmers. This has caused the government to make more strict rules. 

These have a direct impact on productivity. As the government is the one that has full control over the state, Nobody can go against the government or the rules and regulations made by them. 

5. MSP

MSP stands for the Minimum Support Price. It acts as a shield against the rising inflation. This is a kind of nuclear weapon that protects the farmers. And if they are not available with that MSP, they will lose actual price for their yield. 

When the farmers are not provided with the MSP, they stop doing the production. This directly affects productivity. Due to this the equilibrium is disrupted, causing the prices to hike up.

Therefore, it also fluctuates the pulse commodity prices.  

Trading In Pulses

Trading smartly in pulses according to pulse commodity prices can prove to be very profitable for an individual. There are several ways of investing and trading in pulses, with various exchanges offering the services to do so. An individual can use pulses as a hedging opportunity and make his or her finances grow exponentially. The mass demand of pulses allows an ample of opportunity in pulses all over the world.

Even in the agricultural market, a proper chain or we can say flow is followed. There exists a lot of middlemen in between, thus one must invest smartly and wisely without falling prey to the commission agents. The same also goes for online trading too, although the only difference is, there are no middlemen in online trading.  

The Bottom Line

Pulses are an important addition of protein in a diet. And when it comes to a vegetarian, they are the only major supplier of protein to an otherwise carbohydrates rich diet. Pulses have been offering amazing health benefits to the worlṣd for a massive amount of time now and thus it is bound to grow and stay in the market. Working your way around pulse commodity prices and making the most of this opportunity would be a smart choice. For more information feel free to contact PL Global Impex Pte Ltd.

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